Ocean Liner Essay Example | Topics and Well Written Essays - 2000 words - 1

Ocean Liner - Essay ExampleThe Vice President of pay for Ocean Carriers has received an attractive proposal from a prospective guest who wants to assume a enthral for the period of three years from the comp any. The customer, his post and contract terms are all feasible, but the hassle is that the ac participation does not have any ship available at that time to meet the customers unique needs. Therefore, the telephoner needs to urgently purchase a freshly ship so as to fulfill the customers request on time, or on the contrary defy the customers proposal.The problem underlying the case is not merely concerning the acceptance or rejection of the lease proposal by the customer. As the company cannot meet the customers demand simply with any of the available ships, it either needs to purchase a new ship matching the customers needs or to reject the proposal altogether. This does not concern the company with a single routine of thought regarding a new investment. The problem b asically lies in investigating and analyzing the attractiveness of the customer offer against the investment that the company needs to make in this project.The crux of the issue is whether or not the company should purchase the new ship, which is necessary if Ocean Carrier wants to accept the proposal of this customer otherwise the company will have to forego the attractive return offered. Secondly, the customer is willing to contract the ship for a period of three years, while the life of the ship would be 25 years. However as per the companys policy, it utilizes a ship for no more than 15 years of its operations. Therefore, the investment in this new ship exclusively for this customers request needs to be analyzed in the situation if the market environment is feasible for the purchase of new ship and that the ship can be employ to generate returns for the company